The Cabinet decided today to freeze the retail prices of diesel and cooking gas from January 1 until the end of March, but to raise the price of electricity from 3.99 to 4.20 baht/unit for January through April.

Deputy government spokesperson Radklao Inthawong Suwankiri said today that the price freeze on diesel and cooking gas is a continuation of the price cut implemented from September until the end of December, to ease the cost of living and to boost economic recovery.

She added that the Finance and Energy ministries will use excise tax and the Oil Fuel Fund to freeze the diesel price at not more than 30 baht/litre and the price of a 15kg cooking gas cylinder at 425 baht.

Radklao said that the price for electricity has to be increased slightly and asked for public understanding that several factors mean that it is necessary raise the price in the short-term. Changing the pricing structure, which has been in use for more than 40 years, is a long-term measure.

She said, however, that households and low-income earners who use no more than 300 units of electricity per month will be charged the old rate of 3.99 baht/unit for four months, through government subsidies amounting to 1.95 billion baht for 4 months for 17.77 million households.